S*1388 Session 109 (1991-1992)
S*1388(Rat #0411, Act #0361 of 1992) General Bill, By Land
A Bill to amend Section 4-9-155, as amended, Code of Laws of South Carolina,
1976, relating to standards of the annual audit of the offices of county
assessor, auditor, treasurer, and tax collector, so as to provide that the
provisions of this Section are applicable for tax years beginning after
December 31, 1992; to amend Section 12-4-310, as amended, relating to mandated
powers and duties of the Tax Commission, so as to provide for disclosure of
net taxable sales to authorities of a county or municipality; to amend Section
12-4-730, relating to declaration and certification of exemptions and voiding
of tax notices by auditors, so as to change certain references in the Section;
to amend Section 12-7-20, as amended, relating to definitions for purposes of
the income tax, so as to revise the reference date in the definition of
"Internal Revenue Code"; to amend Section 12-7-640, relating to net income of
public services corporations, so as to provide for the apportionment of income
derived from the operation of a shipping line; to amend Sections 12-7-1510,
12-7-1640, as amended, 12-19-20, as amended, 12-19-150, 33-31-50, and
33-35-50, relating to persons required to file tax returns, so as to eliminate
the filing requirements of exempt organizations except where tax on unrelated
business income is due; to repeal Section 33-35-150, relating to annual
reports of certain nonprofit corporations; to amend Section 12-7-1675, as
amended, relating to failure to file tax returns, so as to allow the
Commission to issue assessments against corporations that have been
administratively dissolved yet continue to file returns; to amend Sections
12-7-1680, 12-9-670, and 12-54-240, as amended, relating to collection and
enforcement procedures, so as to change the records retention schedules to six
years; to amend Sections 12-7-2415 and 12-7-2416, relating to tax check-offs
for Wildlife and the Children's Trust Fund respectively, so as to restrict
such check-offs to individual income tax returns only; to amend Section
12-9-310, as amended, relating to income tax withholding, so as to further
provide for exemptions from the withholding requirements; to amend Section
12-9-420, relating to the liability of a withholding agent for failing to
withhold or pay the tax due, so as to define withholding agent; to amend
Section 12-16-20, relating to the Estate Tax, so as to revise the reference
date in the definition of "Internal Revenue Code"; to amend the 1976 Code, by
adding Section 12-21-2575 so as to allow for other methods of accounting for
admissions other than tickets; to amend Section 12-21-2720, as amended,
relating to licenses for coin-operated devices or machines, so as to exempt
from the coin operated device licenses and taxes certain machines subject to
the admissions tax; to amend Section 12-31-420, relating to calculating the
amount of fuel used by a motor carrier, so as to revise the method of
calculating amounts of fuel used; to amend Sections 12-36-120, 12-36-910,
12-36-920, 12-36-930, 12-36-2120, as amended, 12-36-2560, and 12-36-2650,
relating to the South Carolina Sales and Use Tax Act, so as to make technical
corrections; to amend the 1976 Code by adding Sections 12-36-560, 12-36-570,
12-36-1730, 12-36-1740, 12-36-2660, and 12-36-2670, so as to provide criminal
and civil penalties for violations relating to retail licenses and the casual
excise tax, to provide for enforcement, and authorize the members of the Tax
Commission or their designees to administer oaths or take acknowledgments; to
amend Section 12-37-220, as amended, relating to exemptions from ad valorem
taxation, so as to further provide for the exemption of facilities or
equipment for pollution control, to require certain notification to the Tax
Commission rather than the county auditor, to define nonprofit housing
corporations and ensure that property is used exclusively for the elderly and
handicapped, and to exempt all inventory from the tax without reference to a
specified effective date; to amend Section 12-37-2650, as amended, relating to
issuance of tax notices for vehicles, so as to inform taxpayers of their
appeal rights when their personal property is assessed by the county auditor
in accordance with Tax Commission regulations; to amend Section 12-39-180,
relating to property tax, so as to provide for a uniform minimal assessment;
to amend Section 12-43-220, as amended, relating to classification of property
and assessment ratios for purposes of property taxes, so as to extend the time
for filing for the four percent ratio applicable to an owner-occupied legal
residence from May first of the first tax year for which the assessment is
claimed to any time before the first penalty date for taxes due for the first
tax year for which the assessment is claimed, to revise the date for the
publishing of notices, and to make the extended date apply for tax years
beginning after 1990; to amend the 1976 Code by adding Section 12-43-335 so as
to provide for the manner in which the Commission shall assess the property of
merchants and related businesses; to amend Section 12-47-70, as amended,
relating to the abatement or refund of incurred property taxes, so as to
provide a refund period of three years from the date the taxes could have been
paid without a late payment penalty; to amend Section 12-54-80, as amended,
relating to collection and enforcement procedures, so as to revise the manner
in which the six-year statute of limitations for underreported taxes may be
administered; to amend Section 12-54-225, relating to the authority of the
Commission to enter into agreements with other states for the mutual exchange
of tax information, so as to make it possible for the Commission to comply
with the law if information exchanged with other states is misused; to amend
Section 12-54-240, as amended, relating to disclosure of records of and
reports and returns filed with the Tax Commission by employees and agents of
the Commission and State Auditor's Office prohibited, so as to provide for
certain additional exceptions; to amend Section 12-54-420, as amended,
relating to the Setoff Debt Collection Act, so as to allow political
subdivisions to participate; to amend Section 27-18-20, relating to checks or
drafts mailed to an owner and returned undeliverable or not presented for
payment, so as to define unclaimed property for purposes of the Section; to
repeal Section 11-5-110, relating to the writing-off of unpaid checks by the
State Treasurer; to amend Section 33-15-300, relating to equal treatment for
foreign and domestic corporations for administrative closings, so as to
include failure to pay income taxes as a reason for a corporation to be
dissolved; to amend Act 171 of 1991, relating to the General Appropriations
Act for 1991-92, so as to further provide for the manner in which certain
bingo revenue must be distributed; to provide that for the calendar year of
1992, personnel from the assessor's office and the property division will not
be required to attend prescribed courses the calendar year of 1992 if they
have taken at least two required courses during the 1991 calendar year; to add
Section 4-1-175 so as to authorize a county or municipality to issue special
source revenue bonds as provided in Section 4-29-68 and to provide for the
manner in which such revenues may be pledged and for the manner in which
constitutional debt limitations of the political subdivision shall be
calculated; to add Section 4-29-68 so as to authorize a county or municipality
receiving revenues from a payment in lieu of taxes to issue special source
revenue bonds under certain conditions; to amend Section 4-1-170, relating to
counties jointly developing industrial parks with other counties, so as to
further provide for the allocation of assessed value of property within the
park to participating counties and the taxing entities within these counties;
to amend Section 4-29-67, relating to fees in lieu of taxes, so as to revise
the manner in which and conditions under which fees in lieu of taxes are
authorized; to amend Section 4-29-80, relating to additional powers of the
governing bodies of counties and municipalities in regard to industrial
development projects, so as to further provide for these powers; to provide
for the method to be used for calculating fees in lieu of taxes in connection
with a written agreement between a county and an investor executed in good
faith prior to March 15, 1992; to add Section 12-23-815 so as to provide for
the manner in which the Tax Commission shall issue assessments for hospital
taxes; and to amend Section 12-23-830, relating to payment of hospital taxes,
so as to further provide for such payment.-amended title
03/12/92 Senate Introduced and read first time SJ-7
03/12/92 Senate Referred to Committee on Finance SJ-7
04/15/92 Senate Committee report: Favorable with amendment Finance SJ-6
04/16/92 Senate Amended SJ-27
04/16/92 Senate Read second time SJ-42
04/16/92 Senate Unanimous consent for third reading on next
legislative day SJ-42
04/20/92 Senate Read third time and sent to House SJ-1
04/22/92 House Introduced, read first time, placed on calendar
without reference HJ-4
04/28/92 House Special order, set for Tues., April 28, 1992,
after the uncontested calendar HJ-119
04/28/92 House Read second time HJ-130
04/29/92 House Read third time and enrolled HJ-282
04/30/92 Ratified R 411
05/04/92 Signed By Governor
05/04/92 Effective date 05/04/92
05/04/92 Act No. 361
06/22/92 Copies available
(A361, R411, S1388)
AN ACT TO AMEND SECTION 4-9-155, AS AMENDED,
CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING
TO STANDARDS OF THE ANNUAL AUDIT OF THE
OFFICES OF COUNTY ASSESSOR, AUDITOR, TREASURER,
AND TAX COLLECTOR, SO AS TO PROVIDE THAT THE
PROVISIONS OF THIS SECTION ARE APPLICABLE FOR
TAX YEARS BEGINNING AFTER DECEMBER 31, 1992; TO
AMEND SECTION 12-4-310, AS AMENDED, RELATING TO
MANDATED POWERS AND DUTIES OF THE TAX
COMMISSION, SO AS TO PROVIDE FOR DISCLOSURE OF
NET TAXABLE SALES TO AUTHORITIES OF A COUNTY
OR MUNICIPALITY; TO AMEND SECTION 12-4-730,
RELATING TO DECLARATION AND CERTIFICATION OF
EXEMPTIONS AND VOIDING OF TAX NOTICES BY
AUDITORS, SO AS TO CHANGE CERTAIN REFERENCES
IN THE SECTION; TO AMEND SECTION 12-7-20, AS
AMENDED, RELATING TO DEFINITIONS FOR PURPOSES
OF THE INCOME TAX, SO AS TO REVISE THE
REFERENCE DATE IN THE DEFINITION OF
"INTERNAL REVENUE CODE"; TO AMEND
SECTION 12-7-640, RELATING TO NET INCOME OF
PUBLIC SERVICE CORPORATIONS, SO AS TO PROVIDE
FOR THE APPORTIONMENT OF INCOME DERIVED FROM
THE OPERATION OF A SHIPPING LINE; TO AMEND
SECTIONS 12-7-1510, 12-7-1640, AS AMENDED, 12-19-20,
AS AMENDED, 12-19-150, 33-31-50, AND 33-35-50,
RELATING TO PERSONS REQUIRED TO FILE TAX
RETURNS, SO AS TO ELIMINATE THE FILING
REQUIREMENTS OF EXEMPT ORGANIZATIONS EXCEPT
WHERE TAX ON UNRELATED BUSINESS INCOME IS DUE;
TO REPEAL SECTION 33-35-150, RELATING TO ANNUAL
REPORTS OF CERTAIN NONPROFIT CORPORATIONS; TO
AMEND SECTION 12-7-1675, AS AMENDED, RELATING TO
FAILURE TO FILE TAX RETURNS, SO AS TO ALLOW THE
COMMISSION TO ISSUE ASSESSMENTS AGAINST
CORPORATIONS THAT HAVE BEEN ADMINISTRATIVELY
DISSOLVED YET CONTINUE TO FILE RETURNS; TO
AMEND SECTIONS 12-7-1680, 12-9-670, AND 12-54-240, AS
AMENDED, RELATING TO COLLECTION AND
ENFORCEMENT PROCEDURES, SO AS TO CHANGE THE
RECORDS RETENTION SCHEDULES TO SIX YEARS; TO
AMEND SECTIONS 12-7-2415 AND 12-7-2416, RELATING
TO TAX CHECK-OFFS FOR WILDLIFE AND THE
CHILDREN'S TRUST FUND RESPECTIVELY, SO AS TO
RESTRICT SUCH CHECK-OFFS TO INDIVIDUAL INCOME
TAX RETURNS ONLY; TO AMEND SECTION 12-9-310, AS
AMENDED, RELATING TO INCOME TAX WITHHOLDING,
SO AS TO FURTHER PROVIDE FOR EXEMPTIONS FROM
THE WITHHOLDING REQUIREMENTS; TO AMEND
SECTION 12-9-420, RELATING TO THE LIABILITY OF A
WITHHOLDING AGENT FOR FAILING TO WITHHOLD OR
PAY THE TAX DUE, SO AS TO DEFINE WITHHOLDING
AGENT; TO AMEND SECTION 12-16-20, RELATING TO
THE ESTATE TAX, SO AS TO REVISE THE REFERENCE
DATE IN THE DEFINITION OF "INTERNAL REVENUE
CODE"; TO AMEND THE 1976 CODE, BY ADDING
SECTION 12-21-2575 SO AS TO ALLOW FOR OTHER
METHODS OF ACCOUNTING FOR ADMISSIONS OTHER
THAN TICKETS; TO AMEND SECTION 12-21-2720, AS
AMENDED, RELATING TO LICENSES FOR
COIN-OPERATED DEVICES OR MACHINES, SO AS TO
EXEMPT FROM THE COIN-OPERATED DEVICE LICENSES
AND TAXES CERTAIN MACHINES SUBJECT TO THE
ADMISSIONS TAX; TO AMEND SECTION 12-31-420,
RELATING TO CALCULATING THE AMOUNT OF FUEL
USED BY A MOTOR CARRIER, SO AS TO REVISE THE
METHOD OF CALCULATING AMOUNTS OF FUEL USED;
TO AMEND SECTIONS 12-36-120, 12-36-910, 12-36-920,
12-36-930, 12-36-2120, AS AMENDED, 12-36-2560, AND
12-36-2650, RELATING TO THE SOUTH CAROLINA SALES
AND USE TAX ACT, SO AS TO MAKE TECHNICAL
CORRECTIONS; TO AMEND THE 1976 CODE BY ADDING
SECTIONS 12-36-560, 12-36-570, 12-36-1730, 12-36-1740,
12-36-2660, AND 12-36-2670, SO AS TO PROVIDE
CRIMINAL AND CIVIL PENALTIES FOR VIOLATIONS
RELATING TO RETAIL LICENSES AND THE CASUAL
EXCISE TAX, TO PROVIDE FOR ENFORCEMENT, AND
AUTHORIZE THE MEMBERS OF THE TAX COMMISSION
OR THEIR DESIGNEES TO ADMINISTER OATHS OR TAKE
ACKNOWLEDGMENTS; TO AMEND SECTION 12-37-220,
AS AMENDED, RELATING TO EXEMPTIONS FROM AD
VALOREM TAXATION, SO AS TO FURTHER PROVIDE
FOR THE EXEMPTION OF FACILITIES OR EQUIPMENT
FOR POLLUTION CONTROL, TO REQUIRE CERTAIN
NOTIFICATION TO THE TAX COMMISSION RATHER
THAN THE COUNTY AUDITOR, TO DEFINE NONPROFIT
HOUSING CORPORATIONS AND ENSURE THAT
PROPERTY IS USED EXCLUSIVELY FOR THE ELDERLY
AND HANDICAPPED, AND TO EXEMPT ALL INVENTORY
FROM THE TAX WITHOUT REFERENCE TO A SPECIFIED
EFFECTIVE DATE; TO AMEND SECTION 12-37-2650, AS
AMENDED, RELATING TO ISSUANCE OF TAX NOTICES
FOR VEHICLES, SO AS TO INFORM TAXPAYERS OF
THEIR APPEAL RIGHTS WHEN THEIR PERSONAL
PROPERTY IS ASSESSED BY THE COUNTY AUDITOR IN
ACCORDANCE WITH TAX COMMISSION REGULATIONS;
TO AMEND SECTION 12-39-180, RELATING TO PROPERTY
TAX, SO AS TO PROVIDE FOR A UNIFORM MINIMAL
ASSESSMENT; TO AMEND SECTION 12-43-220, AS
AMENDED, RELATING TO CLASSIFICATION OF
PROPERTY AND ASSESSMENT RATIOS FOR PURPOSES
OF PROPERTY TAXES, SO AS TO EXTEND THE TIME FOR
FILING FOR THE FOUR PERCENT RATIO APPLICABLE TO
AN OWNER-OCCUPIED LEGAL RESIDENCE FROM MAY
FIRST OF THE FIRST TAX YEAR FOR WHICH THE
ASSESSMENT IS CLAIMED TO ANY TIME BEFORE THE
FIRST PENALTY DATE FOR TAXES DUE FOR THE FIRST
TAX YEAR FOR WHICH THE ASSESSMENT IS CLAIMED,
TO REVISE THE DATE FOR THE PUBLISHING OF
NOTICES, AND TO MAKE THE EXTENDED DATE APPLY
FOR TAX YEARS BEGINNING AFTER 1990; TO AMEND
THE 1976 CODE BY ADDING SECTION 12-43-335 SO AS TO
PROVIDE FOR THE MANNER IN WHICH THE
COMMISSION SHALL ASSESS THE PROPERTY OF
MERCHANTS AND RELATED BUSINESSES; TO AMEND
SECTION 12-47-70, AS AMENDED, RELATING TO THE
ABATEMENT OR REFUND OF INCURRED PROPERTY
TAXES, SO AS TO PROVIDE A REFUND PERIOD OF
THREE YEARS FROM THE DATE THE TAXES COULD
HAVE BEEN PAID WITHOUT A LATE PAYMENT
PENALTY; TO AMEND SECTION 12-54-80, AS AMENDED,
RELATING TO COLLECTION AND ENFORCEMENT
PROCEDURES, SO AS TO REVISE THE MANNER IN
WHICH THE SIX-YEAR STATUTE OF LIMITATIONS FOR
UNDERREPORTED TAXES MAY BE ADMINISTERED; TO
AMEND SECTION 12-54-225, RELATING TO THE
AUTHORITY OF THE COMMISSION TO ENTER INTO
AGREEMENTS WITH OTHER STATES FOR THE MUTUAL
EXCHANGE OF TAX INFORMATION, SO AS TO MAKE IT
POSSIBLE FOR THE COMMISSION TO COMPLY WITH THE
LAW IF INFORMATION EXCHANGED WITH OTHER
STATES IS MISUSED; TO AMEND SECTION 12-54-240, AS
AMENDED, RELATING TO DISCLOSURE OF RECORDS OF
AND REPORTS AND RETURNS FILED WITH THE TAX
COMMISSION BY EMPLOYEES AND AGENTS OF THE
COMMISSION AND STATE AUDITOR'S OFFICE
PROHIBITED, SO AS TO PROVIDE FOR CERTAIN
ADDITIONAL EXCEPTIONS; TO AMEND SECTION 12-54-420, AS AMENDED, RELATING TO THE SETOFF DEBT
COLLECTION ACT, SO AS TO ALLOW POLITICAL
SUBDIVISIONS TO PARTICIPATE; TO AMEND SECTION
27-18-20, RELATING TO CHECKS OR DRAFTS MAILED TO
AN OWNER AND RETURNED UNDELIVERABLE OR NOT
PRESENTED FOR PAYMENT, SO AS TO DEFINE
UNCLAIMED PROPERTY FOR PURPOSES OF THE
SECTION; TO REPEAL SECTION 11-5-110, RELATING TO
THE WRITING-OFF OF UNPAID CHECKS BY THE STATE
TREASURER; TO AMEND SECTION 33-15-300, RELATING
TO EQUAL TREATMENT FOR FOREIGN AND DOMESTIC
CORPORATIONS FOR ADMINISTRATIVE CLOSINGS, SO
AS TO INCLUDE FAILURE TO PAY INCOME TAXES AS A
REASON FOR A CORPORATION TO BE DISSOLVED; TO
AMEND ACT 171 OF 1991, RELATING TO THE GENERAL
APPROPRIATIONS ACT FOR 1991-92, SO AS TO FURTHER
PROVIDE FOR THE MANNER IN WHICH CERTAIN BINGO
REVENUE MUST BE DISTRIBUTED; TO PROVIDE THAT
FOR THE CALENDAR YEAR OF 1992, PERSONNEL FROM
THE ASSESSOR'S OFFICE AND THE PROPERTY DIVISION
WILL NOT BE REQUIRED TO ATTEND PRESCRIBED
COURSES THE CALENDAR YEAR OF 1992 IF THEY HAVE
TAKEN AT LEAST TWO REQUIRED COURSES DURING
THE 1991 CALENDAR YEAR; TO ADD SECTION 4-1-175 SO
AS TO AUTHORIZE A COUNTY OR MUNICIPALITY TO
ISSUE SPECIAL SOURCE REVENUE BONDS AS PROVIDED
IN SECTION 4-29-68 AND TO PROVIDE FOR THE MANNER
IN WHICH SUCH REVENUES MAY BE PLEDGED AND FOR
THE MANNER IN WHICH CONSTITUTIONAL DEBT
LIMITATIONS OF THE POLITICAL SUBDIVISION SHALL
BE CALCULATED; TO ADD SECTION 4-29-68 SO AS TO
AUTHORIZE A COUNTY OR MUNICIPALITY RECEIVING
REVENUES FROM A PAYMENT IN LIEU OF TAXES TO
ISSUE SPECIAL SOURCE REVENUE BONDS UNDER
CERTAIN CONDITIONS; TO AMEND SECTION 4-1-170,
RELATING TO COUNTIES JOINTLY DEVELOPING
INDUSTRIAL PARKS WITH OTHER COUNTIES, SO AS TO
FURTHER PROVIDE FOR THE ALLOCATION OF
ASSESSED VALUE OF PROPERTY WITHIN THE PARK TO
PARTICIPATING COUNTIES AND THE TAXING ENTITIES
WITHIN THESE COUNTIES; TO AMEND SECTION 4-29-67,
RELATING TO FEES IN LIEU OF TAXES, SO AS TO REVISE
THE MANNER IN WHICH AND CONDITIONS UNDER
WHICH FEES IN LIEU OF TAXES ARE AUTHORIZED; TO
AMEND SECTION 4-29-80, RELATING TO ADDITIONAL
POWERS OF THE GOVERNING BODIES OF COUNTIES
AND MUNICIPALITIES IN REGARD TO INDUSTRIAL
DEVELOPMENT PROJECTS, SO AS TO FURTHER PROVIDE
FOR THESE POWERS; TO PROVIDE FOR THE METHOD TO
BE USED FOR CALCULATING FEES IN LIEU OF TAXES IN
CONNECTION WITH A WRITTEN AGREEMENT BETWEEN
A COUNTY AND AN INVESTOR EXECUTED IN GOOD
FAITH PRIOR TO MARCH 15, 1992; TO ADD SECTION
12-23-815 SO AS TO PROVIDE FOR THE MANNER IN
WHICH THE TAX COMMISSION SHALL ISSUE
ASSESSMENTS FOR HOSPITAL TAXES; AND TO AMEND
SECTION 12-23-830, RELATING TO PAYMENT OF
HOSPITAL TAXES, SO AS TO FURTHER PROVIDE FOR
SUCH PAYMENT.
Be it enacted by the General Assembly of the State of South
Carolina:
Applicability of section
SECTION 1. Section 4-9-155 of the 1976 Code is amended by
adding:
"(C) The provisions of this section are applicable for tax
years beginning after December 31, 1992."
Additional information disclosed to counties and
municipalities
SECTION 2. Section 12-4-310(10) of the 1976 Code, as added
by Act 168 of 1991, is amended to read:
"(10) make available to the authorities of a municipality
or county in this State levying a tax based on gross receipts or net
taxable sales, any records indicating the amount of gross receipts
or net taxable sales reported to the commission; provided,
however, that income tax records may be made available only if
the commission first has satisfied itself that the gross receipts
reported to the municipality or county were less than the gross
receipts as indicated by the records of the commission."
Reference changed
SECTION 3. Section 12-4-730 of the 1976 Code is amended to
read:
"Section 12-4-730. The commission, upon receipt of an
application and upon proper investigation, may declare the real
and personal property of a property owner qualifying for an
exemption from ad valorem taxation identified in this chapter as
exempt and shall certify the exemption to the auditor's office in
the county in which the property is located. Upon certification by
the commission, the auditor shall void any tax notice applicable to
the property."
Definition revised
SECTION 4. (A) Section 12-7-20(11) of the 1976 Code, as last
amended by Act 171 of 1991, Part II, Section 8A, is further
amended to read:
"(11) `Internal Revenue Code' means the Internal
Revenue Code of 1986 as amended through December 31,
1991."
(B) The provisions of Section 12-7-20(11) of the 1976 Code,
as amended by this act, are effective for tax years beginning after
1991.
Apportionment of income of a shipping line
SECTION 5. (A) Section 12-7-640 of the 1976 Code is
amended by adding:
"(6) Shipping lines. Where the income is derived
principally from the operation of a shipping line, the corporation
shall apportion its net apportionable income to South Carolina on
the basis of the ratio of revenue tons loaded and unloaded in this
State during the income year to the revenue tons loaded and
unloaded within and without the State for such year. A revenue
ton is a short ton (two thousand pounds) and must be computed by
using a standard weight of one hundred ninety pounds per
passenger (including free baggage) multiplied by the number of
passengers loaded and unloaded."
(B) The provisions of Section 12-7-640(6) of the 1976 Code,
as added by the provisions of this act, are effective for tax years
beginning after December 31, 1992.
Elimination of filing requirements of exempt organizations;
section repealed
SECTION 6. (A) Section 12-7-1510 of the 1976 Code is
amended by adding:
"(9) Every exempt organization operating in this State
described in Internal Revenue Code Sections 501 through 528
(Exempt Organizations) and 1381 (Cooperatives) with taxable
income in South Carolina under Internal Revenue Code Section
501(b) (Unrelated Business Income), or Sections 1382 and 1383
(Taxable Income of Cooperatives)."
(B) Section 12-7-1640 of the 1976 Code, as last amended by
Act 345 of 1988, is further amended to read:
"Section 12-7-1640. Returns must be in the form the
commission prescribes and must be filed with the commission on
or before the fifteenth day of the fourth month next after the
preceding income year, except returns of corporations, which shall
file returns on or before the fifteenth day of the third month next
after the preceding income year. Returns of organizations exempt
under Internal Revenue Code Section 501 reporting unrelated
business income pursuant to Section 12-7-1510(9), must be filed
on or before the fifteenth day of the fifth month following the
taxable year. Returns of information provided for by Section
12-7-1590 must be filed before March fifteenth of each year and
shall set forth the information required by Section 12-7-1590 for
the calendar year next preceding."
(C) Section 12-19-20(a) of the 1976 Code, as last amended by
Act 444 of 1988, is further amended to read:
"(a) Every corporation organized under the laws of this
State and every corporation organized to do business under the
laws of any other state, territory, or country and qualified to do
business in South Carolina and any other corporation required by
Section 12-7-230 to file income tax returns, in addition to any
other requirements of law, must make a report annually to the Tax
Commission on or before the fifteenth day of the third month next
after the preceding income year in a form prescribed by the Tax
Commission and Secretary of State containing all information and
facts either the Tax Commission or the Secretary of State may
require for the administration of the provisions of this chapter and
the provisions of Title 33."
(D) Section 12-19-150 of the 1976 Code is amended to
read:
"Section 12-19-150. The provisions of this chapter do
not apply to any nonprofit corporation organized under Chapters
31 or 33 of Title 33 exempt from income taxes pursuant to Section
501 of the Internal Revenue Code of 1986, any volunteer fire
departments and rescue squads, any cooperative organized under
Chapter 45 or 47 of Title 33, any building and loan association or
any credit union doing a strictly mutual business or to any
insurance, fraternal, beneficial, or mutual protection companies or
associations or to any foreign corporation whose entire income is
not included in gross income for federal income tax purposes due
to any treaty obligation of the United States."
(E) Section 33-31-50 of the 1976 Code is amended to
read:
"Section 33-31-50. Upon the filing of the above
declaration and the payment of a charter fee of fifteen dollars the
Secretary of State shall issue to the proposed corporation a
certificate of incorporation for the term that may be fixed in the
declaration, or, in the absence of the limitation, in perpetuity.
Churches, religious organizations, religious societies, religious
institutions, and volunteer fire departments shall pay a charter fee
of three dollars."
(F) Section 33-35-50 of the 1976 Code is amended to
read:
"Section 33-35-50. Upon filing any articles of
incorporation, amendment thereof, or other paper relating to the
incorporation, merger, consolidation, or dissolution of any
corporation not for profit in the office of the Secretary of State,
the following fees must be paid to him for the use of the State:
(1) a filing fee of ten dollars for the filing and approval of
articles of incorporation;
(2) a fee of one dollar for the first page, fifty cents for each
additional page and two dollars for authentication for furnishing
certified copies of articles of incorporation or other documents
concerning a corporation not for profit;
(3) a fee of five dollars in each case for filing papers relating
to dissolution or amendment of articles of
incorporation."
(G) Section 33-35-150 of the 1976 Code is repealed.
(H) The amendments to Sections 12-7-1510, 12-7-1640, 12-19-20, 12-19-150, 33-31-50, and 33-35-50 of the 1976 Code, as
contained in this section, and the repeal of Section 33-35-150 of
the 1976 Code, as contained in this section, are effective for tax
years beginning on or after January 1, 1993.
Assessment provisions revised
SECTION 7. Section 12-7-1675 of the 1976 Code, as last
amended by Act 659 of 1988, Section 30A, is further amended to
read:
"Section 12-7-1675. Notwithstanding the provisions
of Sections 12-7-1650 and 12-7-1670, the commission shall notify
any domestic or foreign corporation of its failure to comply with
the provisions of Chapters 7 and 19 of this title requiring the filing
of returns. If the taxpayer fails to file the required return within
sixty days of the notice, the commission may provide the
Secretary of State the name of the taxpayer failing to file a return
and the Secretary of State shall administratively dissolve the
corporation if it is a domestic corporation and shall revoke its
certificate of authority if it is a foreign corporation authorized to
transact business in this State. The commission may not make an
estimated assessment or issue any warrant based on such
estimated assessment against a taxpayer prior to referring such
taxpayer to the Secretary of State for administrative dissolution or
revocation."
Records retained for six years
SECTION 8. (A) Section 12-7-1680 of the 1976 Code is
amended to read:
"Section 12-7-1680. Except in accordance with proper
judicial order or as otherwise provided by law, it is unlawful for
the members of the commission or any deputy, agent, clerk, or
other officer or employee thereof to divulge or make known in
any manner the amount of income or any particulars set forth or
disclosed in any report or return required under this chapter.
Nothing in this section may be construed to prohibit the
publication of statistics so classified as to prevent the
identification of particular reports or returns and the items thereof
or the inspection by the Attorney General or other legal
representative of the State of the report or return of any taxpayer
who shall bring action to set aside or review the tax based thereon
or against whom an action or proceeding has been instituted to
recover any tax or any penalty imposed by this chapter. Reports
and returns must be preserved for six years and thereafter until the
commission orders them to be destroyed.
Any offense against this section shall be punished by a fine of
not exceeding one thousand dollars or by imprisonment not
exceeding one year, or both, at the discretion of the court, and if
the offender be an officer or employee of the State he shall be
dismissed from office and be incapable of holding any public
office in this State for a period of five years thereafter."
(B) Section 12-9-670 of the 1976 Code is amended to
read:
"Section 12-9-670. Except in accordance with the
proper judicial order or as otherwise provided by law, it shall be
unlawful for the members of the commission or any deputy, agent,
clerk, or other officer or employee thereof to divulge or make
known in any manner the amount of withholding of income or any
particulars set forth or disclosed in any report or return required
under this chapter. Nothing in this section shall be construed to
prevent the publication of statistics so classified as to prevent the
identification of particular reports or returns in the items thereof
or the inspection by the Attorney General or other legal
representative of the State of the report or the return of any
taxpayer who shall bring action to set aside or review the tax
based thereon or against whom an action or proceeding has been
instituted to recover any tax or any penalty imposed by this
chapter. Reports and returns shall be preserved for six years and
thereafter until the commission orders them to be destroyed.
Any person violating the provisions of this section shall, upon
conviction, be punished by a fine not exceeding one thousand
dollars or by imprisonment not exceeding one year, or both, at the
discretion of the court, and if the offender is an officer or an
employee of the State he shall be dismissed from office and be
disqualified from holding any public office in this State for a
period of five years thereafter."
(C) Section 12-54-240(B)(1) of the 1976 Code is amended to
read:
"(1) publication of statistics classified to prevent the
identification of particular reports or returns and the items
included on them or the inspection by the Attorney General or
other legal representative of the State of the report or return of any
taxpayer who brings an action to set aside or review the tax based
on the report or return or against whom an action or proceeding
has been instituted to recover any tax or any penalty imposed by
this chapter, or of any taxpayer who has applied for review of any
adjustment proposed by the commission, or of any taxpayer filing
a petition for redetermination of a deficiency assessed by the
commission. Reports and returns must be preserved for six years
and thereafter until the commission orders them to be
destroyed."
Tax check-offs restricted to individual returns
SECTION 9. (1) Subsections (A) and (B) of Section 12-7-2415
are amended to read:
"(A) Each taxpayer required to file a state individual
income tax return who desires to contribute to the nongame
wildlife and natural areas program of the State may designate the
contribution on the appropriate state income tax form. The
contribution may not increase or decrease the income tax liability
of the taxpayer, and may be made by reducing the income tax
refund of the taxpayer by the amount designated or by accepting
additional payment from the taxpayer by the amount designated,
whichever is appropriate.
(B) All South Carolina individual income tax return forms
must contain a designation for a contribution to the nongame and
natural areas program. The instructions accompanying the income
tax form shall contain a description of the purposes for which the
nongame species and habitat acquisition programs were
established and the use of monies from the income tax
contribution."
(2) Subsections (A) and (B) of Section 12-7-2416 of the 1976
Code are amended to read:
"(A) Each individual taxpayer required to file a state
income tax return who desires to contribute to the Children's Trust
Fund of South Carolina as created by Section 20-7-5010 may
designate the contribution on the appropriate state income tax
form. The contribution may not increase or decrease the income
tax liability of the taxpayer and may be made by reducing the
income tax refunds of the taxpayer by the amount designated or
by accepting additional payment from the taxpayer by the
amounts designated, whichever is appropriate.
(B) All South Carolina individual income tax return forms
must contain a designation for a contribution to the Children's
Trust Fund of South Carolina. Contributions of other amounts
may be made directly to the Children's Trust Fund. The
instructions accompanying income tax forms must contain a
description of the purposes for which the Children's Trust Fund
was established and the use of monies from the income tax
contribution."
(3) The provisions of Sections 12-7-2415 and 12-7-2416, as
amended by this act, take effect for returns due to be filed for
taxable years beginning on or after January 1, 1992.
Exemptions from withholding requirements revised
SECTION 10. (A) Section 12-9-310(A)(3) of the 1976 Code is
amended to read:
"(3) hiring or contracting or having a contract with a
nonresident taxpayer conducting a business or performing
personal services of a temporary nature carried on within this
State, where the contract exceeds ten thousand dollars or
reasonably could be expected to exceed ten thousand dollars, must
withhold two percent of each and every payment made to these
nonresidents. This item does not apply to a utility hiring or
contracting or having a contract with any nonresident utility or to
a county hiring or contracting with a person not in its regular
employ to perform services of a temporary nature relating to
damage caused by natural forces. For purposes of this item:
(a) `natural forces' means conflagration, flood, storm,
earthquake, hurricane, or other public calamity;
(b) `utility' means a person, public utility, electric
cooperative, special purpose district, authority, or political
subdivision producing, storing, conveying, transmitting, or
distributing communication, electricity, gas, water, steam, or
sewerage; and
(c) `county' means a county of this State.
This item also does not apply to amounts paid to:
a nonresident contractor performing work under a contract
with the South Carolina Department of Highways and Public
Transportation; and
a nonresident subcontractor performing work for a contractor
who is operating under a contract with the South Carolina
Department of Highways and Public Transportation.
For purposes of this item, the term nonresident does not
include motion picture companies as defined in Section 12-36-2120 nor does it include entities performing personal services for
motion picture companies when the motion picture companies and
the personal service companies obtain a certificate of authority
from the Secretary of State pursuant to Title 33.
The commission may grant partial or total exemption from the
provisions of this subsection where:
(a) a portion of the contract is performed outside of this
State;
(b) a portion of the contract consists of providing tangible
personal property or material;
(c) a portion of the contract is subcontracted to others;
or
(d) the taxpayer is not conducting business of a temporary
nature in this State as evidenced by substantial assets or a place of
business located in this State.
The conditions set forth in item (3) of this section may be waived
by the commission, provided the payee shall insure the
commission by bond, secured by an insurance company licensed
by the South Carolina Insurance Commission, or deposit of
securities subject to approval by the State Treasurer, or cash
which shall not bear interest, that the payee will comply with all
applicable provisions of Chapter 7 of this title and with the
withholding requirements insofar as his obligations as a
withholding agent are concerned."
(B) The provisions of Section 12-9-310(A)(3) of the 1976
Code, as amended by this act, are effective for taxable years
beginning after December 31, 1992.
Withholding agent defined
SECTION 11. Section 12-9-420 of the 1976 Code is amended to
read:
"Section 12-9-420. Every withholding agent who fails
or neglects to withhold or pay to the commission any sums
required by this chapter to be withheld and paid is personally and
individually liable therefor, and any sum or sums withheld in
accordance with the provisions of Sections 12-9-310 to 12-9-370
are to be held in trust for the State. An employee is entitled to a
credit for the amount of income tax withheld from his wages even
though the employer failed to remit and pay over the amount to
the Tax Commission. The term `withholding agent', as used in this
section, includes an officer or employee of a corporation, or a
member or employee of a partnership, who as such officer,
employee, or member is under a duty to perform the act in respect
of which the violation occurs."
Reference date revised
SECTION 12. (A) Section 12-16-20(5) of the 1976 Code is
amended to read:
"(5) `Internal Revenue Code' means the Internal
Revenue Code of 1986, as amended through December 31,
1991."
(B) The provisions of Section 12-16-20 of the 1976 Code, as
amended by this act, are effective for tax years beginning after
1991.
Other methods of accounting for admissions
SECTION 13. The 1976 Code is amended by adding:
"Section 12-21-2575. In lieu of the issuance of tickets
as provided for in this article, the commission may authorize or
approve other methods of accounting for paid
admissions."
Exemption of certain machines
SECTION 14. Section 12-21-2720(1) of the 1976 Code, as
amended by Act 171 of 1991, Part II, Section 14A, is further
amended to read:
"(1)(a) Any machine for the playing of music or kiddy
rides operated by a slot or mechanical amusement devices and
juke boxes wherein is deposited any coin or thing of value.
(b) Any machine on which an admissions tax is imposed
is exempt from the C.O.D. license provisions of this
section."
Method of calculating amount of fuel used revised
SECTION 15. (A) Section 12-31-420 of the 1976 Code is
amended to read:
"Section 12-31-420. The amount of tax due must be
calculated upon the amount of gasoline or other motor fuel used
by the motor carrier in its operation within this State during the
reporting period. The Tax Commission shall develop forms to
reflect the tax due in accordance with nationally recognized
standards."
(B) The provisions of Section 12-31-420 of the 1976 Code, as
amended by this act, are effective for returns due on or after July
1, 1992.
Sales and use tax revisions
SECTION 16. (A) Items (1) and (4) of Section 12-36-120 of the
1976 Code are amended to read:
"(1) tangible personal property to licensed retail
merchants, jobbers, dealers, or wholesalers for resale, and do not
include sales to users or consumers not for resale;
(4) materials, containers, cores, labels, sacks, or bags
used incident to the sale and delivery of tangible personal
property, or used by manufacturers, processors, and compounders
in shipping tangible personal property."
(B) That portion of Section 12-36-910(B) which precedes item
(1) is amended to read:
"The sales tax imposed by this article also applies to
the:"
(C) Section 12-36-920 of the 1976 Code is amended by
adding:
"(E) The taxes imposed by this section are imposed
on every person engaged or continuing within this State in the
business of furnishing accommodations to transients for
consideration."
(D) Section 12-36-930(A)(2) of the 1976 Code is amended to
read:
"(2) the tax that would be imposed under this
chapter."
(E) Section 12-36-2120(9)(d) of the 1976 Code is amended to
read:
"(d) the generation of motive power for
transportation. For the purposes of this exemption, `manufacturer'
or `manufacturing' includes the activities of mining and
quarrying;"
(F) Section 12-36-2120(12) of the 1976 Code is amended to
read:
"(12) water sold by public utilities, if rates and
charges are of the kind determined by the Public Service
Commission, or water sold by nonprofit corporations organized
pursuant to Sections 33-35-10 to 33-35-170;"
(G) Section 12-36-2120(26) of the 1976 Code is amended to
read:
"(26) all supplies, technical equipment, machinery,
and electricity sold to radio and television stations, and cable
television systems, for use in producing, broadcasting, or
distributing programs. For the purpose of this exemption, radio
stations, television stations, and cable television systems are
deemed to be manufacturers;"
(H) The first paragraph of Section 12-36-2560 of the 1976
Code is amended to read:
"On all sales of retailers liable for the tax imposed by
Article 9 of this chapter (sales tax) made on an installment basis
which conform to the provisions of the Uniform Commercial
Code in which the retailer takes a security interest, the vendor
may elect to include in the return only the portion of the sales
price actually received by the retailer during the taxable period or
to include the entire sales price in the return for the taxable period
during which the sale was consummated. Having once elected
either method of reporting the sales, the taxpayer must continue
unless and until permission has been received from the
commission to make a change. Nothing in this section may be
construed to permit delay in reporting sales under other terms of
credit or cash sales."
(I) Section 12-36-2650 of the 1976 Code is amended to
read:
"Section 12-36-2650. The taxes imposed by this
chapter are in addition to all other taxes, licenses, and charges and
no provisions of this chapter may be construed to relieve a person
from the payment of a license or privilege tax now or hereafter
imposed by law."
(J) Article 5, Chapter 36, Title 12 of the 1976 Code is
amended by adding:
"Section 12-36-560. A person liable for the license
tax provided by this article who engages in business as a seller or
retailer in this State without a retail license or after the license has
been suspended, and each officer of a corporation which engages
in business without a retail license or after the license is
suspended, is guilty of a misdemeanor and, upon conviction, must
be punished by a fine of not more than two hundred dollars or
imprisonment not exceeding thirty days, or both. Offenses under
this section are triable in magistrate's court.
Section 12-36-570. A person liable for the license tax
provided by this article who fails to pay the tax or obtain the
license within the time provided or who fails to comply with a
lawful regulation of the commission is liable for a penalty not to
exceed five hundred dollars."
(K) Article 17, Chapter 36, Title 12 of the 1976 Code is
amended by adding:
"Section 12-36-1730. A person who wilfully or
knowingly makes a false statement for the purpose of avoiding all
or a part of the casual excise tax imposed by this article or who
assists another person to avoid all or a part of the casual excise tax
levied by this article is guilty of a misdemeanor and, upon
conviction, must be punished by a fine of not more than two
hundred dollars or imprisoned not more than thirty days, or both.
Offenses under this section are triable in magistrate's court.
Section 12-36-1740. A person liable for the casual excise
tax provided by this article who fails to pay the tax or comply
with a lawful regulation of the commission is liable for a penalty
not to exceed five hundred dollars."
(L) Article 25, Chapter 36, Title 12 of the 1976 Code is
amended by adding:
"Section 12-36-2660. The Tax Commission shall
administer and enforce the provisions of this chapter.
Section 12-36-2670. The commissioners or their designees
may administer an oath to a person or take the acknowledgement
of a person with respect to a return or report required by this title
or the regulations of the commission."
Exemption of facilities or equipment for pollution control
revised
SECTION 17. (A) Section 12-37-220 A.(8) of the 1976 Code,
as amended, is further amended to read:
"(8) all facilities or equipment of industrial plants
which are designed for the elimination, mitigation, prevention,
treatment, abatement, or control of water, air, or noise pollution,
both internal and external, required by the state or federal
government and used in the conduct of their business. At the
request of the Tax Commission the Department of Health and
Environmental Control shall investigate the property of any
manufacturer or company, eligible for the exemption to determine
the portion of the property that qualifies as pollution control
property. Upon investigation of the property, the department shall
furnish the commission with a detailed listing of the property that
qualifies as pollution control property. For equipment that
serves a dual purpose of production and pollution control, the
value eligible for the ad valorem exemption is the difference in
cost between this equipment and equipment of similar production
capacity or capability without the ability to control
pollution;"
(B) The provisions of Section 12-37-220 A.(8) of the 1976
Code, as amended by this act, are effective for tax years beginning
after December 31, 1992.
Notification to Tax Commission required
SECTION 18. Section 12-37-220 B.(1) of the 1976 Code is
amended to read:
"(1) The dwelling house in which he resides and a lot
not to exceed one acre of land owned in fee or for life, or jointly
with a spouse, by any veteran who is one hundred percent
permanently and totally disabled from a service-connected
disability, if the veteran files a certificate signed by the county
service officer of the total and permanent disability with the State
Tax Commission. The exemption is allowed the surviving spouse
of the veteran and is also allowed to the surviving spouse of a
serviceman killed in action in the line of duty who owned the lot
and dwelling house in fee or for life, or jointly with his spouse, so
long as the spouse does not remarry, resides in the dwelling, and
obtains by devise the fee or a life estate in the dwelling. A
surviving spouse who disposes of the exempt dwelling and
acquires another residence in this State for use as a dwelling
house with a value no greater than one and one-half times the fair
market value of the exempt dwelling may apply for and receive
the exemption on the newly acquired dwelling, but no subsequent
dwelling of a surviving spouse is eligible for exemption under this
item. The spouse shall inform the Tax Commission of the change
in address of the dwelling. The dwelling house is defined as a
person's legal residence."
Nonprofit housing corporation exemption revised
SECTION 19. Section 12-37-220 B.(11) of the 1976 Code is
amended to read:
"(11) All property of nonprofit housing corporations
devoted exclusively to providing below-cost housing for the aged
or for handicapped persons or for both aged and handicapped
persons as authorized by Section 202 of the Housing Act of 1959
and regulated by regulations that appear in the Federal Register,
24 CFR Part 885. The reference date of the Housing Act of 1959
is as provided in Section 12-7-20(11)."
Inventory tax exemption revised
SECTION 20. Section 12-37-220 B.(30) of the 1976 Code is
amended to read:
"(30) All inventories."
Notification to taxpayers of appeal rights
SECTION 21. Section 12-37-2650 of the 1976 Code, as
amended by Act 576 of 1988, is further amended by adding at the
end:
"Tax bills (notices) for county assessed personal property
valued in accordance with applicable Tax Commission regulations
must include notification of the taxpayer's appeal rights, to
include a minimum amount of information of how the taxpayer
should file his appeal, to whom, and within what time
period."
Minimum assessment on taxable property
SECTION 22. Section 12-39-180 of the 1976 Code is amended
to read:
"Section 12-39-180. Each county auditor, after
receiving from the Comptroller General and from such other
officers and authorities as are legally empowered to determine the
rate or amount of taxes to be levied for the various purposes
authorized by law statements of the rates and sums to be levied for
the current year, shall forthwith proceed to determine the sums to
be levied upon each tract and lot of real property and upon the
amount of personal property, monies, and credits listed in his
county in the name of each person, which must be assessed
equally on all real and personal property subject to such taxes and
set down in one or more columns in the manner and form as the
Comptroller General shall prescribe. The Tax Commission or the
county auditor shall place a minimum assessment of at least
twenty dollars on all property that generates a tax bill."
Time for filing extended; time for publishing notices
revised
SECTION 23. (A) The first and second paragraphs of Section
12-43-220(c) of the 1976 Code, as last amended by Act 637 of
1988, are further amended to read:
"The legal residence and not more than five acres
contiguous thereto, when owned totally or in part in fee or by life
estate and occupied by the owner of the interest, is taxed on an
assessment equal to four percent of the fair market value of the
property. When the legal residence is located on leased or rented
property and the residence is owned and occupied by the owner of
a residence on leased property, even though at the end of the lease
period the lessor becomes the owner of the residence, the
assessment for the residence is at the same ratio as provided in
this item. If the lessee of property upon which he has located his
legal residence is liable for taxes on the leased property, then the
property upon which he is liable for taxes, not to exceed five acres
contiguous to his legal residence, must be assessed at the same
ratio provided in this item. If this property has located on it any
rented mobile homes or residences which are rented or any
business for profit, this four percent value does not apply to those
businesses or rental properties. This subsection (c) is not
applicable unless the owner of the property or his agents make
written application to the county assessor on or before the first
penalty date for taxes due for the first tax year in which the
assessment under this article is made and certify to the following
statement: `Under the penalty of perjury I certify that I meet the
qualifications for the special assessment ratio for a legal residence
as of January first of the appropriate tax year'.
The assessor shall have printed in the local newspaper during
the period January through December at least five notices calling
to public attention the provisions of filing the application as a
prerequisite for claiming this classification. Failure to file within
the prescribed time constitutes abandonment of the owner's right
for this classification for the current tax year, but the local taxing
authority may extend the time for filing upon a showing
satisfactory to it that the person had reasonable cause for not filing
on or before the first penalty date."
(B) The provisions of Section 12-43-220(c) of the 1976 Code,
as amended by this act, are effective for property tax years
beginning after 1990.
Assessment of property of merchants and related
businesses
SECTION 24. (A) The 1976 Code is amended by adding:
"Section 12-43-335. For the purpose of assessing
property of merchants and related businesses, as provided by
Section 12-37-970, the Tax Commission shall follow the
classifications of the Standard Industrial Classification Manual,
Bureau of the Budget, 1987 edition, as set out below:
1. Division C;
2. Division E, Major Group 48, except numbers 481 and
482;
3. Division F;
4. Division G;
5. Division I, Major Groups 72, 73, 75, 76, 78, and
79."
(B) Section 12-43-335 of the 1976 Code, as added by this act,
is effective for the tax year 1991 and thereafter.
Refund period revised
SECTION 25. (A) Section 12-47-70 of the 1976 Code, as
amended by Act 78 of 1989, is further amended to read:
"Section 12-47-70. An incorrect property tax
assessment or collection by a county, municipality, or other
political subdivision must be abated or refunded by the county,
municipality, or other political subdivision when a claim for the
abatement or refund is made within three years from the date the
taxes could have been paid without a late payment penalty. This
section does not apply to an abatement or refund claim that is
based upon the property's valuation, it being specifically intended
that the value of property for tax purposes be resolved by the
assessors of real or personal property and the boards or
commissions established therefor."
(B) The provisions of Section 12-47-70 of the 1976 Code, as
amended by this act, are effective for tax years beginning after
December 31, 1992.
Applicability of six-year statute of limitations
SECTION 26. Section 12-54-80(2) of the 1976 Code is
amended to read:
"(2) In the case of any tax administered by the
commission, if the taxpayer omits at least twenty-five percent of
gross amount stated in any tax return or document (for example,
gross proceeds of sales, sales price, gross receipts, gross income,
gross kilowatt hours, appraised value, gross capitalized cost, and
similar factors) under provisions of law administered by the
commission, the tax may be assessed within six years after the
return was filed."
When exchange agreement must be canceled
SECTION 27. Section 12-54-225 of the 1976 Code is amended
to read:
"Section 12-54-225. The commission may enter into
agreements with other states of the United States or their
authorized representatives for the mutual exchange of tax returns,
information thereon, and related information. The commission
may, if it chooses, designate a third person to act as its agent for
the receipt and exchange of the returns and information, including
the assimilation of the material for proper use. The exchange may
be in any form suitable to the parties, including, but not limited to,
cards, tapes, and other electronic means. The returns and
information exchanged may be used for the exclusive purpose of
administering the tax laws of the exchanging jurisdictions,
including any administrative or judicial proceeding that involves
the administration, collection, or recovery of any tax. The
agreements may be on such terms and conditions as the
commission and the other states may agree and designate.
However, any such agreement entered into by the commission
must include a provision that the agreement may be canceled upon
notice."
Exceptions provided
SECTION 28. Section 12-54-240(B) of the 1976 Code, as last
amended by Act 171 of 1991, Part II, Section 43B, is further
amended by adding:
"(11) disclosure of information contained on any return to
the South Carolina Employment Security Commission, South
Carolina Department of Highways and Public Transportation, or
to the Department of the Treasury, Alcohol, Tobacco and
Firearms Division.
(12) disclosure of whether a resident or nonresident tax
return was filed by any particular taxpayer to the South Carolina
Wildlife and Marine Resources Department."
Claimant agency to include a political subdivision
SECTION 29. Section 12-54-420(1) of the 1976 Code, as
amended by Act 168 of 1991, is further amended to read:
"(1) `Claimant agency' means a state agency, board,
committee, commission, public institution of higher learning,
political subdivision, and the Internal Revenue Service. It also
includes a private institution of higher learning for the purpose of
collecting debts related to default on authorized educational loans
made pursuant to Chapter 111, 113, or 115 of Title 59."
Definition of unclaimed property; section repealed
SECTION 30. (A) Section 27-18-20 of the 1976 Code is
amended by adding:
"(18) `Unclaimed' property includes:
(a) checks or drafts mailed to an owner and returned as
undeliverable, or
(b) checks or drafts mailed to an owner and not presented
for payment."
(B) Section 11-5-110 of the 1976 Code is repealed.
Additional reason for a corporation to be dissolved
SECTION 31. Section 33-15-300(a)(2) of the 1976 Code is
amended to read:
"(2) the foreign corporation does not pay, when they are
due, any franchise taxes, taxes payable under Chapter 7 of Title
12, or penalties imposed by this act or other law;"
Distribution of certain bingo revenue
SECTION 32. (1) Subsection A., Section 32, Part II of Act 171
of 1991, is amended to read:
"A. In addition to the bingo taxes levied under the
provisions of Section 12-21-3440(B) of the 1976 Code, and
beginning July 1, 1991, an additional one dollar is levied for each
bingo player a session for sessions conducted by holders of a
Class AA license and an additional fifty cents is levied for each
bingo player a session for sessions conducted by holders of a
Class B license each fiscal year. Nine hundred forty-eight
thousand dollars of the total revenues received from bingo taxes
as provided by Section 12-21-3440 and collected by the Tax
Commission must be deposited monthly in equal amounts into an
account in the office of the State Treasurer and called
`Commission on Aging Senior Citizen Centers Permanent
Improvement Fund' (Fund). All interest earned on monies in the
fund must be credited to the fund. The remaining revenues if any,
generated by the bingo taxes must be deposited as provided in
Section 12-21-3590."
(2) The provisions of subsection A., Section 32, Part II of Act
171 of 1991, as amended by this act, are effective beginning on
July 1, 1992.
Course attendance not required
SECTION 33. For the calendar year 1992, personnel from the
assessor's office and the Property Division of the South Carolina
Tax Commission shall not be required to attend courses required
by Section 12-37-110 and applicable regulations if they have
taken two required courses during the 1991 calendar year.
Special source revenue bonds authorized; pledging of
revenues; determination of debt limitation
SECTION 34. Chapter 1, Title 4 of the 1976 Code is amended
by adding:
"Section 4-1-175. A county or municipality receiving
revenues from a payment in lieu of taxes pursuant to Section 13 of
Article VIII of the Constitution of this State may issue special
source revenue bonds secured by and payable from all or a part of
that portion of the revenues which the county is entitled to retain
pursuant to the agreement required by Section 4-1-170 in the
manner and for the purposes set forth in Section 4-29-68. The
county or municipality may pledge the revenues for the additional
securing of other indebtedness in the manner and for the purposes
set forth in Section 4-29-68.
A political subdivision of this State subject to the limitation of
either Section 14(7)(a) or Section 15(6) of Article X of the
Constitution of this State pledging pursuant to this section all or a
portion of the revenues received and retained by that subdivision
from a payment in lieu of taxes to the repayment of any bonds
shall not include in the assessed value of taxable property located
in the political subdivision for the purposes of calculating the
limit imposed by those sections of the Constitution any amount
representing the value of the property that is the basis of the
pledged portion of revenues. If the political subdivision, before
pledging revenues pursuant to this section, has included an
amount representing the value of a parcel or item of property that
is the subject of a payment in lieu of taxes in the assessed value of
taxable property located in the political subdivision and has issued
general obligation debt within the debt limit calculated on the
basis of such assessed value, then it may not pledge pursuant to
this section revenues based on the item or parcel of property, to
the extent that the amount representing its value is necessary to
permit the outstanding general obligation debt within the debt
limit of the political subdivision."
Special source revenue bonds authorized
SECTION 35. Chapter 29, Title 4 of the 1976 Code is amended
by adding:
"Section 4-29-68. (A) A county or municipality that
receives and retains revenues from a payment in lieu of taxes
pursuant to Section 4-29-60 or Section 4-29-67 may issue special
source revenue bonds secured by and payable from all or a part of
such revenues, subject to the following terms and conditions:
(1) The issuance of bonds is authorized by a duly adopted
ordinance of the governing body of the issuer, after a public
hearing is held at least fifteen days after notice of the hearing is
published in a newspaper of general circulation in the county or
municipality.
(2) The bonds are issued solely for the purpose of paying
the cost of designing, acquiring, constructing, improving, or
expanding the infrastructure serving the issuer in order to enhance
the economic development of the issuer and costs of issuance of
the bonds.
(3) The bonds may include amounts for capitalized
interest for a period not to extend beyond the later of (a) the date
that is three years from the date of issuance of the bonds and (b)
the first date on which any ad valorem taxes (including, but not
limited to, county or school district taxes) would have been
payable on the property (other than unimproved real property)
which is the subject of the payment in lieu of taxes.
(4) The issuer may use proceeds of the bonds (a) directly
for infrastructure owned or controlled by the issuer or (b) to make
loans or grants to, or to participate in joint undertakings with,
other agencies or political subdivisions of the State that own or
control the infrastructure referred to in item (2) of this
subsection.
(5) The bonds are, and must state on their face that they
are, (a) payable solely from all or a specifically described part of
the payments in lieu of taxes received and retained by the issuer
under Section 4-29-60, Section 4-29-67, or Section 13 of Article
VIII of the Constitution of this State, (b) not secured by, or in any
way entitled to, a pledge of the full faith, credit, or taxing power
of the issuer, (c) not an indebtedness of the issuer within the
meaning of any state constitutional provision or statutory
limitation but are payable solely from a special source that does
not include revenues from any tax or license, and (d) not a
pecuniary liability of the issuer or a charge against the issuer's
general credit or taxing power.
(6) The ordinance authorizing the issuance of the bonds
shall specifically describe the portion of the payments in lieu of
taxes received and retained by the issuer from which the bonds are
payable and by which the bonds are secured.
(7) The bonds may be executed and delivered at any time
as a single issue or from time to time as several issues, be in the
form and denominations, be of the tenor, be payable in the
installments and at the time or times not to exceed the time over
which payments in lieu of taxes are scheduled to be received, be
subject to the terms of redemption, be payable at the place or
places, bear interest at the rate or rates which is payable at the
place or places, and contain provisions not inconsistent with this
section, all of which must be provided in the ordinance
authorizing the bonds.
(8) The bonds may be sold at public or private sale at the
prices and in the manner and from time to time as may be
determined by the governing board to be most advantageous, and
the governing board may pay, as a part of the costs described in
item (2) of this subsection, and out of the bond proceeds, all
expenses, premiums, commissions, and expenses which the
governing board considers necessary or advantageous in
connection with the authorization, sale, and issuance of the
bonds.
(9) The ordinance may provide for the issuance, in the
future, of further bonds on a parity with those initially issued, but
the proceedings preclude the issuance of bonds or any
applications of any sort secured by a lien prior to the lien of the
bond or bonds afterward issued on a parity with the bonds.
(10) Pending the issuance of bonds, bond anticipation
notes may be issued, and to the end that a vehicle be provided
therefor, the provisions of Section 11-17-10 to Section 11-17-110,
as now or hereafter amended, are applicable to the bond
anticipatory borrowing.
(11) The ordinance authorizing the issuance of the bonds
may contain agreements and provisions customarily contained in
the instruments securing revenue or special source bonds as the
governing board considers advisable, but the issuer does not have
the power to obligate itself to impose or maintain any particular
level of tax rates.
(B) A county or municipality that receives and retains
revenues from a payment in lieu of taxes pursuant to Section
4-29-60 or Section 4-29-67 may pledge the revenues as additional
security for general obligation debt or revenue debt of the issuer if
the general obligation debt or revenue debt is issued in accordance
with items (1) and (2) of this subsection.
(C) A county or municipality that receives and retains
revenues from a payment in lieu of taxes pursuant to Section
4-29-60 or Section 4-29-67 may pledge the revenues as additional
security for general obligation debt or revenue debt of other
agencies or political subdivisions of the State referred to in item
(4)(b) of this subsection if the pledge is authorized by a
duly-adopted ordinance of the governing body of the county or
municipality after a public hearing is held at least fifteen days
after notice of the hearing is published in a newspaper of general
circulation in the county or municipality and if the general
obligation debt or revenue debt to which the revenues received
from a payment in lieu of taxes are pledged is issued solely for the
purpose of paying the cost of designing, acquiring, constructing,
improving, or expanding the infrastructure serving the county or
municipality in order to enhance the economic development of the
county or municipality and costs of issuance of the bonds.
(D) Revenues received by a county or municipality which may
be pledged or from which bonds may be payable and secured
pursuant to this Section 4-29-68 or Section 4-1-175 may be used
jointly to pay or secure a single series of bonds.
(E) A political subdivision of this State subject to the
limitation of either Section 14(7)(a) or Section 15(6) of Article X
of the Constitution of this State pledging pursuant to this section
all or a portion of the revenues received and retained by that
subdivision from a payment in lieu of taxes to the repayment of
any bonds shall not include in the assessed value of taxable
property located in the political subdivision for the purposes of
calculating the limit imposed by those sections of the Constitution
any amount representing the value of the property that is the basis
of the pledged portion of revenues. If the political subdivision,
before pledging revenues pursuant to this section, has included an
amount representing the value of a parcel or item of property that
is the subject of a payment in lieu of taxes in the assessed value of
taxable property located in the political subdivision and has issued
general obligation debt within the debt limit calculated on the
basis of such assessed value, then it may not pledge pursuant to
this section revenues based on the item or parcel of property, to
the extent that the amount representing its value is necessary to
permit the outstanding general obligation debt within the debt
limit of the political subdivision."
Allocation of assessed value of property within park
SECTION 36. Section 4-1-170 of the 1976 Code, as added by
Act 139 of 1989, is amended to read:
"Section 4-1-170. By written agreement, counties may
develop jointly an industrial or business park with other counties
within the geographical boundaries of one or more of the member
counties as provided in Section 13 of Article VIII of the
Constitution of this State. The written agreement entered into by
the participating counties must include provisions which:
(1) address sharing expenses of the park;
(2) specify by percentage the revenue to be allocated to each
county;
(3) specify the manner in which revenue must be distributed
to each of the taxing entities within each of the participating
counties.
For the purpose of bonded indebtedness limitation and for the
purpose of computing the index of taxpaying ability pursuant to
Section 59-20-20(3), allocation of the assessed value of property
within the park to the participating counties and to each of the
taxing entities within the participating counties must be identical
to the allocation of revenue received and retained by each of the
counties and by each of the taxing entities within the participating
counties."
Revision of fee in lieu of taxes
SECTION 37. Section 4-29-67 of the 1976 Code, as last
amended by Act 173 of 1989, is further amended to read:
"Section 4-29-67. (A) Notwithstanding the
provisions of Section 4-29-60, in the case of a financing
agreement in the form of a lease or a lease purchase, for a project
qualifying under subsection (B), the county and the investor may
enter into an inducement agreement which provides for payment
in lieu of taxes (fee) as provided in this section.
(B) In order to qualify for the fee as provided in subsection
(D)(2):
(1) Title to the property must be held by the county or in
the case of a project located in an industrial development park as
defined in Section 4-1-170 title may be held by more than one
county provided each county is a member of the industrial
development park.
(2) The investment must be a project which is located in a
single county or an industrial development park as defined in
Section 4-1-170.
(3) The minimum level of investment must be at least
eighty-five million dollars and must be invested within the time
period provided in subsection (C).
(4) (a) Except as provided in subsection (B)(4)(b), the
investment must be made by a single taxpayer in the form of a
corporation or a partnership.
(b) The members of the same controlled group of
corporations as defined in Section 1563 of the Internal Revenue
Code of 1986 can qualify for the fee if the combined investment
in the county by the members meets the minimum investment
requirements. The members whose investments will be used to
meet the minimum level of investment must all be parties to any
agreements providing the terms for payment of the fee. The
county and the members who are part of the inducement
agreement may agree that any investments by other members of
the controlled group within the time period provided in subsection
(C)(1) shall qualify for the payment regardless of whether the
member was part of the inducement agreement. Members of the
controlled group which are not parties to the inducement
agreement must invest at least ten million dollars in the county
and must notify the Tax Commission that the investment is
subject to the fee before the execution of the lease agreement
covering the investment by the member. The investments under
subsection (B)(4)(b) must be within the same county.
In order to qualify under this provision, investors claiming the
fee must be members of the same controlled group at the time of
the inducement agreement and all lease agreements which are
executed by the parties.
Members of the controlled group must provide the information
considered necessary by the Tax Commission to ensure that the
investors are part of a controlled group.
(C) (1) From the end of the property tax year in which the
investor and the county execute the initial lease or lease purchase
agreement, the investor has five years in which to complete its
investment for purposes of qualifying for Section 4-29-67. If the
investor does not anticipate completing the project within five
years, the investor may apply to the county before the end of the
five-year period for an extension of time to complete the project.
If the county agrees to grant the extension, the county must do so
in writing and a copy must be delivered to the Tax Commission
within thirty days of the date the extension was granted. The
extension may not exceed two years in which to complete the
project.
There is no extension allowed for the five-year period in which
to meet the minimum level of investment. If the minimum level
of investment is not met within five years, all property financed
under the lease agreement reverts retroactively to the payments
required by Section 4-29-60. The difference between the fee
actually paid by the investor and the payment which is due under
Section 4-29-60 is subject to interest as provided in Section
12-43-305.
Unless property qualifies as replacement property under a
contract provision enacted pursuant to subsection (F)(2), any
property placed in service after the five-year period, or seven
years in the case of a project which has received an extension, is
not part of the fee agreement under subsection (D)(2) and is
subject to the payments required by Section 4-29-60 if the county
has title to the property, or to property taxes as provided in
Chapter 37 of Title 12 if the investor has title to the property.
(2) The annual fee provided by subsection (D)(2) is
available for no more than twenty years. For projects which are
completed and placed in service during more than one year, each
year's investment may be subject to the fee in subsection (D)(2)
for twenty years to a maximum total of twenty-seven years for the
fee for a single project which has been granted an extension.
Replacement property as defined in subsection (F)(2) is entitled to
the fee payment for the period of time remaining on the fee for the
property which it is replacing.
(D) The inducement agreement must provide for fee payments,
to the extent applicable, as follows:
(1) (a) before property is placed in service which qualifies
under subsection (B), an annual fee payment equal to the property
taxes that would have been due on any previously taxed property
had it remained taxable.
(b) on undeveloped property, an annual fee payment
equal to the property taxes that would have been due on any
previously taxed property had it remained taxable.
(c) fee payments under subsection (D)(1) will not be
considered part of the maximum period for the fee provided in
subsection (C)(2).
(2) After property qualifying under subsection (B) is
placed in service, an annual fee payment determined in
accordance with one of the following is due:
(a) an annual payment in an amount not less than the
property taxes that would be due on the project if it were taxable,
but using an assessment ratio of not less than six percent, and a
fixed millage rate as provided in subsection (G), and a fair market
value estimate determined by the South Carolina Tax Commission
as follows:
(i) for the real property using the original cost,
and
(ii) for personal property using the original cost less
depreciation allowable for property tax purposes, except that the
investor is not entitled to any extraordinary obsolescence
deduction.
(b) an annual payment based on any alternative
arrangement yielding a net present value of the sum of the fees for
the life of the agreement not less than the net present value of the
fee schedule as calculated under subsection (D)(2)(a). Net present
value calculations performed under this subsection must use a
discount rate identical to the interest rate in effect for new or
existing United States Treasury bonds of similar maturity as
published during the month in which the inducement agreement is
executed. If no interest rate is available for the month in which
the inducement agreement is executed, the last published rate for
the appropriate maturity must be used. If there are no bonds of
appropriate maturity available, bonds of different maturities may
be averaged to obtain the appropriate maturity.
(c) an annual payment using a formula that results in a fee
not less than the amount required pursuant to subsection
(D)(2)(a), except that every fifth year the applicable millage rate
is allowed to increase or decrease in step with the average actual
millage rate applicable in the district where the project is located
based on the preceding five-year period.
(3) At the conclusion of the payments determined
pursuant to items (1) and (2) of this subsection, an annual
payment equal to the taxes due on the project as if it were taxable.
When the property is no longer subject to the fee under subsection
(D)(2), the fee or property taxes must be assessed based on the
fair market value as of the latest reassessment date.
(E) Calculations pursuant to subsection (D)(2) must be made
on the basis that the property, if taxable, is allowed all applicable
property tax exemptions except the exemption allowed under
Section 3(g) of Article X of the Constitution of this State and the
exemption allowed pursuant to Section 12-37-220B(32) and
(34).
(F) With regard to the calculation of the fee provided in
subsection (D)(2), the inducement agreement may provide for the
disposal of property and the replacement of property subject to the
fee as follows:
(1)(a) If an investor disposes of property subject to the fee,
the fee must be reduced by the amount of the fee applicable to that
property.
(b) Property is disposed of only when it is scrapped or
sold in accordance with the lease agreement.
(c)(i) If the investor used any method to compute the fee
other than that provided in subsection (D)(2)(a), the fee on the
property which was disposed of must be recomputed in
accordance with subsection (D)(2)(a) and to the extent that the
amount which would have been paid under subsection (D)(2)(a)
exceeds the fee actually paid by the investor, the investor must
pay the difference in the manner provided in subsection
(F)(1)(c)(ii). If the investor used the method provided in
subsection (D)(2)(c), the millage rate provided by subsection
(D)(2)(c) must be used to calculate the amount which would have
been paid under subsection (D)(2)(a).
(ii) If the investor replaces the property which was
disposed of under subsection (F)(2), then the difference calculated
in subsection (F)(1)(c)(i) may be paid using the same present
value structure used to calculate the fee for the replacement
property. If the fee payment for the replacement property is
calculated using subsection (D)(2)(a), the difference may be paid
using a present value method which results in equal payments
over the remaining life of the fee. If when replacing property the
investor does not choose to pay the difference over the remaining
life of the fee, the difference must be paid with the next fee
payment. If the investor does not replace the property which has
been disposed of, the investor shall pay the difference calculated
in subsection (1)(c)(i) with the next fee payment.
(d) If at any time following the period provided in
subsection (C), the investment based on income tax basis with no
deduction for depreciation falls below the eighty-five million
dollar minimum investment, the fee provided in subsection (D)(2)
is no longer available and the investor is required to make the
payments which are due under Section 4-29-60 for the remainder
of the lease period.
(e) If there is no provision in the agreement dealing with
the disposal of property in accordance with this subsection, the fee
remains fixed and no adjustment to the fee is allowed for disposed
property.
(2) Any property which is placed in service as a
replacement for property which is subject to the fee payment may
become part of the fee payment as provided in this item:
(a) Replacement property does not have to serve the same
function as the property it is replacing. Replacement property
qualifies for fee treatment provided in subsection (D)(2) only up
to the original income tax basis of fee property which is being
disposed of in the same property tax year. More than one piece of
property can replace a single piece of property. To the extent that
the income tax basis of the replacement property exceeds the
original income tax basis of the property which it is replacing, the
excess amount is subject to payments as provided in Section
4-29-60.
(b) The new replacement property which qualifies for the
fee provided in subsection (D)(2) is recorded using its income tax
basis and the fee is calculated using the millage rate and
assessment ratio provided on the original fee property. If the
investor uses the method of making the payment provided in
subsection (D)(2)(b) with either a fixed millage rate, or a
changing millage rate as provided in subsection (D)(2)(c) if the
fee on the original investment uses that method, then the investor
and the county shall negotiate the method of calculating the
present value of the fee payments for each year remaining in the
fee period. This method must be provided to the Tax Commission
at the time information concerning the calculation of the original
fee payment is provided to the Tax Commission. If a method of
calculating the fee payment for replacement property is not
negotiated, then the method of calculating the payment must be
based on subsection (D)(2)(a).
(c) In order to qualify as replacement property title to the
replacement property must be held by the county.
(d) If there is no provision in the fee agreement dealing
with replacement property, any property placed in service after the
five-year period, or seven years in the case of a project which has
received an extension, is not part of the fee agreement under
subsection (D)(2) and is subject to the payments required by
Section 4-29-60 if the county has title to the property, or to
property taxes as provided in Chapter 37 of Title 12 if the investor
has title to the property.
(G) The county and the investor may enter into an agreement
to establish the millage rate (millage rate agreement) for purposes
of calculating payments under subsection (D)(2)(a) and the first
five years under subsection (D)(2)(c). This millage agreement
must be executed on the date of the inducement agreement or
anytime thereafter up to and including the date of the initial lease
agreement. The millage rate cannot be lower than the cumulative
property tax millage rate legally levied by or on behalf of all
taxing entities within which the subject property is to be located
which is the latest such cumulative rate at the time the millage
agreement is executed, regardless of the tax year to which that
property tax millage applies. If no millage rate agreement is
signed before the date of the initial lease agreement, the millage
rate is deemed to be the existing cumulative property tax millage
rate on the date the initial lease agreement is executed by both
parties.
(H) The investor and the county may amend the terms of their
inducement agreement as it concerns the fee payment, except with
regard to the minimum millage rate as provided in subsection (G)
and the discount rate, at any time before the initial lease
agreement date. The contract provisions concerning the fee
payment may not be amended after the initial lease agreement
date.
(I) At the time of the inducement agreement (first agreement),
the investor and the county may agree that if within five years
following the five-year minimum investment period, the investor
invests an additional eighty-five million dollars in a new project,
the parties shall enter into a new inducement agreement (second
agreement) providing for a fee in connection with the new
investment. The first agreement may establish the assessment
ratio to be used in the second agreement and may also provide that
the millage rate is calculated using the lowest millage rate
available for the second agreement using the provisions of
subsections (D)(2)(c) and (G). All other terms must be negotiated
by the parties in the second agreement.
(J)(1) For a project not located in an industrial development
park as defined in Section 4-1-170, distribution of the fee in lieu
of taxes on the project must be made in the same manner and
proportion that the millage levied for school and other purposes
would be distributed if the property were taxable. For this
purpose, the relative proportions must be calculated based on the
following procedure: holding constant the millage rate set in
subsection (G) and using all tax abatements automatically granted
for taxable property, a full schedule of the property taxes that
would otherwise have been distributed to each
millage-levying-entity in the county must be prepared for the life
of the agreement, up to twenty years maximum. These separate
schedules must then be reduced to present value using the
discount rate provided under subsection (D)(2)(b). The resulting
values for each millage-levying-entity as a percentage of the
present value total for all such entities determines each entity's
relative share of each year's fee payment for all subsequent years
of the agreement.
(2) For a project located in an industrial development
park as defined in Section 4-1-170, distribution of the fee in lieu
of taxes on the project must be made in the manner provided for
by the agreement establishing the industrial development
park.
(K) As a directly foreseeable result of negotiating the fee,
gross revenue of a school district in which a project is located in
any year a fee negotiated pursuant to this section is paid, may not
be less than gross revenues of the district in the year before the
first year for which a fee in lieu of taxes is paid. In negotiating
the fee, the parties shall assume that the formulas for the
distribution of state aid at the time of the execution of the
agreement must remain unchanged for the duration of the
agreement.
(L) Projects on which a fee in lieu of taxes is paid pursuant to
this section are considered taxable property at the level of the
negotiated payments for purposes of bonded indebtedness
pursuant to Sections 14 and 15 of Article X of the Constitution of
this State and for purposes of computing the index of taxpaying
ability pursuant to Section 59-20-20(3). However, for a project
located in an industrial development park as defined in Section
4-1-170, projects are considered taxable property in the manner
provided in Section 4-1-170 for purposes of bonded indebtedness
pursuant to Sections 14 and 15 of Article X of the Constitution of
this State and for purposes of computing the index of taxpaying
ability pursuant to Section 59-20-20(3).
(M) The minimum amount of the initial investment
provided in subsection (B)(2) of this section may not be reduced
except by a special vote which, for purposes of this section, means
an affirmative vote in each branch of the General Assembly by
two-thirds of the members present and voting, but not less than
three-fifths of the total membership in each branch.
(N) The investor shall file the returns, contracts, and other
information which may be required by the Tax Commission in
order to report investments in connection with the fee.
(O) Failure to make a timely fee payment and file required
returns shall result in penalties being assessed in accordance with
Sections 12-45-180 and 12-37-800.
(P) The Tax Commission may require returns and other
information it considers appropriate to administer the provisions
of this section, and may issue the rulings and regulations it
determines necessary or appropriate to carry out the purpose of
this section."
Powers revised
SECTION 38. Section 4-29-80 of the 1976 Code is amended to
read:
"Section 4-29-80. The governing board has the power
to provide that the project and improvements must be acquired by
the county or incorporated municipality, the industry, or both, on
real estate owned by the county, incorporated municipality, or
other agency or political subdivision of the State or the industry,
that bond proceeds must be disbursed by the trustee bank or banks
or depository during construction upon the estimate, order, or
certificate of the industry, and if the financing agreement is in the
form of a lease that the project need not be conveyed to the county
or incorporated municipality for lease to the industry until its
completion. The governing board may authorize the industry to
acquire real estate and commence construction in anticipation of
the issuance of bonds and to provide that the industry must be
reimbursed for the expenditures from the proceeds of the bonds if
and when issued. In making the agreements or provisions the
governing board does not have the power to obligate the county or
incorporated municipality except with respect to the project and
the application of the revenues therefrom and does not have the
power to incur a pecuniary liability or a charge upon the general
credit of the county or incorporated municipality or against its
taxing powers."
Method for calculating certain fees in lieu of taxes
SECTION 39. (A) In connection with a written agreement
between the county and the investor executed in good faith prior
to March 15, 1992, concerning the method for calculating the fee
allowed pursuant to Section 4-29-67 of the 1976 Code, the
method provided in the agreement by the parties will be binding
except as provided in subsections (D) and (E) of this section.
(B) If the investor and county are operating under an existing
agreement which does not discuss replacement property or the
disposal of property subject to the fee, the parties can agree to
follow any previously written opinion of the Attorney General or
Tax Commission concerning these issues.
(C) The investor and the county who are operating under an
existing fee agreement may renegotiate the payment to include
provisions concerning property which is disposed of and
replacement property which is consistent with Section 4-29-67(F)
of the 1976 Code.
(D) The investor and the county who are operating under an
existing fee agreement may agree to an extension as provided in
Section 4-29-67(C)(2) of the 1976 Code. In no event may an
existing or modified agreement exceed in total the time period
provided in Section 4-29-67(C)(1) of the 1976 Code.
(E) An existing agreement may not provide that the terms of
the agreement can be amended except as provided in Section
4-29-67(H) of the 1976 Code.
Issuance of assessments for hospital taxes
SECTION 40. Article 11, Chapter 23, Title 12 of the 1976 Code
is amended by adding:
"Section 12-23-815. The Tax Commission shall issue
assessments for the tax provided by this article based on
information provided by the Department of Health and
Environmental Control and the Health and Human Services
Finance Commission."
Payment of hospital taxes
SECTION 41. Section 12-23-830 of the 1976 Code, as amended
by Act 105 of 1991, is further amended to read:
"Section 12-23-830. On the first day of each quarter,
each general hospital shall remit one-fourth of its annual tax to the
Tax Commission. The tax must be paid for each quarter a hospital
is in operation. If a hospital ceases operations, the taxes not paid
as a result of the cessation of operations must be apportioned
among other hospitals in operation."
Time effective
SECTION 42. This act takes effect upon approval by the
Governor.
Approved the 4th day of May, 1992. |